Advanced Search

Law No. 165 Of 3 August 1998

Original Language Title:  LEGE nr. 165 din 3 august 1998

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
LEGE no. 165 165 of 3 August 1998 on the establishment at the disposal of the Ministry of Agriculture and Food of the Fund for the financing of expenditure related to agricultural works in the vegetal and livestock sector, from 1998 to 2000
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 289 289 of 6 August 1998



The Romanian Parliament adopts this law + Article 1 (1) Of the allocations provided in the state budget for 1998, the Ministry of Agriculture and Food shall be made available to the Ministry of Agriculture and Food and shall be managed by the commercial banks, the fund for the financing of the expenses agricultural sector and those for animal husbandry, hereinafter referred to as the fund, in the amount of 940 billion lei. (2) The fund shall be supplied with the allocations approved by the state budget with this destination for the Ministry of Agriculture and Food and shall be reconstituted from the amounts reimbursed and from the interest paid by the commercial banks, according to the present laws. + Article 2 (1) The Fund is intended for the lending of agricultural producers, in order to finance the expenditure related to agricultural works in the vegetal and animal husbandry sector, in accordance with specific technologies. (2) Annually, the Government, at the proposal of the Ministry of Agriculture and Food, will approve by decision the crops and animal species that will be financed, as a priority, according to the law. (3) In the meaning of this law, agricultural producers are: individual agricultural producers, family agricultural associations, agricultural associations without legal personality, provided by Law no. 36/1991 36/1991 on agricultural companies and other forms of association in agriculture, tenants, agricultural companies with legal personality, agricultural companies with private capital, agricultural companies with majority or full capital state. + Article 3 (1) From the Fund the Ministry of Agriculture and Food will provide commercial banks with the amounts necessary for the lending of agricultural producers to finance the expenses related to agricultural works in the vegetal sector and those for increasing animals. (2) The amounts from the fund will be made available to commercial banks, on the basis of conventions, in which the amounts granted, the repayment terms and the conditions of the loans are provided. + Article 4 (1) At the amounts drawn from the fund the commercial banks will pay an interest equal to the account rate, practiced by the National Bank of Romania. (2) Commercial banks will provide agricultural producers with loans from the fund, at which they will charge 6 percentage points above the discount rate. + Article 5 (1) Credits will be granted to agricultural producers by commercial banks, under the conditions of art. 2-4 and depending on the fulfilment of the credit criteria provided by the banking rules in force. (2) Credits granted under this law do not benefit from government guarantees. + Article 6 The beneficiaries of the loans repay the loans in a maximum of 360 days from the granting, the due rates will be agreed according to the specific technologies, correlated with the deadlines for the valorization of the production. + Article 7 ((1) The interest shall be calculated on the balance of the loan account and shall be paid to commercial banks according to the terms agreed in the loan agreements. ((2) The interest of the fund for the amounts drawn by the commercial banks from the fund shall be distinguished by them, in a separate account. + Article 8 (1) Within the time limit for the repayment of the credit provided in art. 6, commercial banks will reimburse to the fund the amounts received and the related interest, within a maximum of 10 working days from the date of their collection from the borrowers. (2) The beneficiaries of the loans, who repay the loans and the interest related to the due dates stipulated in the loan contracts, benefit from a bonus, calculated on the interest volume, which is deducted by the commercial banks from the amounts due fund. (3) The level of the bonus provided in par. ((2) is 70% of the volume of interest due to be borrowed. ((4) Bonification shall be granted to beneficiaries of credit and in the event of non-repayment of credit rates at intermediate terms, under the conditions of full repayment of loans and interest at the final deadlines established by credit agreements. (5) The amounts reimbursed by the beneficiaries of the credits at the time limits provided in 6 will be returned to the fund by the commercial banks, together with the interest rate related to the account rate, determined by the National Bank of Romania, within 10 working days from the date of the due dates. (6) When making payments from loans approved under the conditions of art. 2-4 commercial banks will check the destination of loans based on opposable documents. If payments are found from loans without complying with the intended destination, commercial banks will return to the fund, from their own sources, the credit part used unlawfully and the account rate. + Article 9 (1) Agricultural producers who benefit from loans from the fund, under the conditions of this law, have the obligation to respect the destination for which they were granted. ((2) The change of the credit destination by its beneficiary entails the immediate cessation of lending, the return of the credit granted and the interest thereof, corresponding to the volume of credits whose destination has been changed, as well as penalties to the state budget, calculated at the level of the interest rate at which the offer of purchase of government securities was awarded at the time of finding the change of destination. + Article 10 The unused amounts from the Fund, as well as those from loan and interest repayments, existing at the Ministry of Agriculture and Food on 31 December 1998 and on 31 December 1999, shall be carried over to the following year and shall be continue to use, under the present law. + Article 11 Commercial banks that will grant loans from the fund may take over, under the present law, the loans granted with the same destination from their own sources for the agricultural campaign in the autumn of 1997 and from the first part of 1998, starting with the date of entry into force of this Law + Article 12 Within 15 days from the date of entry into force of this Law, the Ministry of Agriculture and Food, with the opinion of the Ministry of Finance, will present to the Government for the approval of the methodological norms regarding the development, use and settlement the commercial banks of the fund to finance the expenditure related to agricultural works in the plant and animal husbandry sector. This law was adopted by the Chamber of Deputies at the meeting of June 2, 1998, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT PAULA IVANESCU This law was adopted by the Senate at the meeting of July 6, 1998, in compliance with the provisions of art 74 74 para. (2) of the Romanian Constitution. SENATE PRESIDENT PETRE ROMAN -----------------